DeepX, South Korean AI Chip Designer, Prepares for IPO with Morgan Stanley as Lead Advisor

DeepX, a South Korean AI chip designer, has hired Morgan Stanley to raise capital ahead of a potential IPO in 2027. The startup is preparing for a new funding round, aiming to raise significantly more than the $79 million secured in a Series C round last year. DeepX has also partnered with Baidu to collaborate on industrial AI projects and specializes in on-device chips that compete with large companies like Nvidia.

South Korean AI chip designer DeepX Co. has hired Morgan Stanley to assist with a round of capital-raising ahead of a potential initial public offering (IPO) in 2027. The startup is preparing for a new funding round to raise significantly more than the $79 million it secured in a Series C round last year [1].

DeepX aims to go public in about two years, according to people familiar with the matter. The company specializes in on-device chips, which are semiconductors designed to run AI functions directly on devices such as robots and drones without a constant cloud connection. By focusing on low-power and cost-effective solutions, DeepX aims to compete with large companies like Nvidia Corp. [1].

In a separate development, DeepX has partnered with Baidu Inc. to collaborate on industrial artificial intelligence projects. As part of the partnership, DeepX will join Baidu’s open-source deep learning framework PaddlePaddle, which is designed to help developers build and deploy AI models [1].

DeepX's strategy of focusing on on-device chips is part of a rising wave of AI chip startups emerging from South Korea, home to the world’s top two memory makers. Other ventures include FuriosaAI Inc., which got a fresh round of $125 million last month [1].

The capital raise and partnership with Baidu position DeepX as a player to watch in the competitive AI chip market. However, the company's success will depend on its ability to secure sufficient funding and maintain its technological edge over established competitors like Nvidia.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-09/ai-chip-firm-deepx-hires-morgan-stanley-for-funding-before-ipo